1.

Physical inventory

a) physically counting the stocks in the warehouse . Lets say we have received the hundred quantities
From the supplier and store it in the bin

b) Later there will be the internal movements or shipping request from the customer

c) Stocks are moing from one bin to the another bin for the replenishments

d) stocks wil be keep on moving from the bins . In system by system showing the stock
But there are some situations the actual stocks might be different from the system stock

e) During the handling , some materials has broken means that was not captured anywhere

f) some times might be missing of materials , when you placed 100, next time you will come and count means
95 only there . In this case what happens system wise its showing the 100 quantity ,
But the bin wise ninety only there

g) In order to match this mismatch , we will do the physical inventory . In order to control we will make the some
setups

h) Every month once i have to count the stocks , six months once i have to count the stocks , one year once i
have to count the stocks and to ensure that the stock which is showing in the system,the quantity is same as
physically we doing the count quantity

i) If client is not interested in the accounting of the inventory , its the legal rule. Every company
Should do atleast once in the year
2. Mostly what happens , customers frequently do the physical inventories for the finished goods
Because that materials going to make the money for them . They spending money for the raw materials and
make the manufacturing product in the production

Storage location level we will create the PI document and we will try to count the quant based on the
Storage location

a) In the EWM side , there is no the storage location , the lowest organization in the EWM is the
Storage bin . you can do the count at storage bin level

a1) It will count all the materials insided the bin. One materials or the multiple materials

b) one more option is called the product specific physical inventroy. You can count the particular product
from all of the bins

b1) whenever you going to the count , within the product specific or the storage bin specific
Handling units are supported

c) Lets say you are creating the storage bin specific physical inventory , now your storage bin
Products are stored in the handling units

d)whenever you entering into the count , you can mention how many handling units are there
What are the products are there ? what are the quantities are there. All these details you can enter this is
the one option

e)another one option is - Some companies does not count the products . One of the manufacturing
company manufacture the hard disks . Normally they will do the make to order
f) Based on the customer requirements , based on the requirement planner will creates the order
Production team will make the manufacturing and they will produce the finished goods and do the packing
inthe production itself

g) The packing line will be in the production floor, they do the proper paking as per the customer
Requirements . Normally we will call the inner box. From there it will come to the warehouse

h) warehouse pick all the boxes and put it into the one big box normally they call it as the outer carton .Then
they send it to the customer

f) For this process they have to do the cycle counting on the daily basis . At that time they cannot see the
material , but they will do the physical counting

g) In such cases , higher level hu inventory is there , what they have to do they just want to confirm
How many boxes are there thats it. But each bin have different quantities of products are there

h) we have the option in the configuration as the weather you want complete level hu in the inventory

i)If you enable that , system will allow you to only scan the hu and confirm the physical entry . You no
Need to enter the product , no need to enter the quantity everything

j) In that cases what system will do ,If you confirm hu are there, then in the book stock
What system will do is in that cases in if you confirm there is in the book stock for that what is the
what are the products are there? What are the quantities are there the same will be, you
know, calculated as a counter stock also.

k) And on top of this, for example, I have no ten handling units in one particular bin.
I want to do physical inventory for only one handling [Link] that possible?

That is not possible in standard. With the add on it wil be possible

l) So here we will have one transaction doing both,

m) So it's not like, you know, explicitly we are having a separate like a physical inventory.
You have to create a storage bin level or product [Link] when we go and count at that time,
we can count at each levels for for example, if you give storage bin specific all the issues within
that storage bin, you are going to count it at the time.
n) Even in your physical inventory setting, you have an option like display, you know, book stock or
display objects.

o) if you select that, what happens whenever

you try to goto count transaction system will propose the book stock saying that, you know, as per
the book stock there are five handling units. now please confirm what are the handling units you
have

p) or what are the products The system will propose all the book stock.
Just you have to know only the counted stock [Link] have to enter it.

q) Some companies, auditors will not allow that.

They will say that when they count, they should not have a visibility of actual book stocks.

r) Without knowing that we have to count ,later we have to match it. In that cases, you have to
uncheck the display object.

s) In that case, what happens when you go for counting system will not propose anything.
You have to tell the system when see the bin.

t) These are the boxes are there.

All the information you have to enter and number, product number, quantity.

u)Then you have to say later . it will know by the backend.

It will cross-check that with the book stock to calculate the differences.
So either ways we can do you can hide it or display it.

w) So either ways we can do it (Display or hide it the system quantity), you can hide it or display it.
Correct that settings is there at the activity area level.

x)Cycle counting is always should be the product specific only

3. physical inventory area, you have to create a separate physical inventory on top of the activity area

a) we have to create one more activity area called Area called physical inventory area.

b) This area specifically used to create the inventory documents

c) So we have to create an area called area in physical inventory configuration.

d)we will do all this like as I told the display object, whether you want to display object for the counting or
not

4. whether you want level counting or not,

a) what type of procedure you want to use, all these things will configure at area level

b) then this area should be assigned to the activity area.

c) So whenever you try to create PI document for a bin system will check what its activity area and

d) What is thePI area link to that and the document

e) the control data will be based on that area settings

f) So most of the settings we will be doing at area level.

1) So there are a lot of no cycle counting progress reports and all. We will be there, clients will be
using to see what is the status because as per their legal requirements, they have to complete all,
the physical inventory of their products

A. whenever you count the materials, there will be an option.

B. one table will be there. Line admit table like basically administration table.

C. That table should have the data saying that whether this particular product has been fully
counted or not in the warehouse or not.

D. if fully counted means it will mark it as X and there will be a count date

E. It will see what was the latest physical inventory counting document.

F. And with that date, it will say that physical inventory is completed for this product as per the
[Link] for all the products, you should have completed it.

G. basically what happens whenever you do physical inventory, there will be a check called
completeness Check system will see whether this is the product, you know, within this activity
area.

H. what are the bins are having stocks, whether all the bins, you know, have been counted already
for this particular product or not.

I) For example, all the bins which are having this product stocks is already been counted and this is
the last bin counting and posting then system will mark that product as completed.

J) That checkness we can do at physical inventory area level or at the whole warehouse level

k) if you give physical inventory level,it it will marks as a complete every physical inventory area
complete like that,If you give whole warehouse level, then we can whenever it counted all the

warehouse, Complete as the Warehouse level

2) We can create a document with initial status, with inactive or directly with active status.

a) if you create by inactive, you can later you should go to go and activate it

b) Then only it will be use it. You cannot process anything with inactive documents.

c) If you create with the inactive status, Even it will not block any inventory. only if you create active
document in the inventory, then only it will block it.

d) once you created active document, then you can do the counting for that and you can do the
posting also for that.
3) if you want to delete the document at any stage, you can delete the inactive document or you can
delete the active document or even after entering the counting results, if you want to delete, you
can delete [Link] it will delete all the counting results.

4)
a) My stock is [Link]'re counting at eight.

b) Then when you post the eight, when you post it,
click on the post in the document, then the stock will become eight at the bin.

c) Even if you count also the bin level stock will not change . only changing in the post only.
The quantity also will get changed during the posting time.

d) And this posting will change only your stock EWM side .It will not change the ERP stock.
ERP stock remains same only till you post

e) To get the stock in the ERP , there is one t code there - We have a separate transaction
code called difference analyzer.

f) That is only at the product level, not at physical [Link] it will be we will be
giving that to finance team.

g) Because that posting document will go and create a material document seven series
moment types.

h) it will hit the accounting also.

i) normally count things will be done by warehouse team and posting will be done normally by
inventory control teams

j) The difference analyzer posting should be given to the finance team for hit the
accounting document

k) Different analyzer is the product level counting only .HU level two ways we can do as I told

a) you can enter HU number and you can enter the product number and you can enter the
quantity number, all the details you can enter during the counting that is detailed counting.

l) If you are doing a complete level HU, just you will scan only HU and confirm it

m) In both the ways it will possible. If you have existing stock , then it will blindly follows the
count [Link] it will go to the packing section.

n) In WM HUNV01warehouse counting happens

o) after counting, actually two postings are there.

p) First posting we have to do at the document level to update the quantity.

q) Second posting is based on the finance , this time posting will be in the block status.
But if you want to block or not block, that is an option we have.

r) Whenever we create a posting document, there will be an option block inventory.

s) If you select that whenever you go one level in the the Monitor stock, there will be an one
column called inventory active(IA).That column will marked as X.
If it is inactive, it will not block

t) Whenever it is active or counted , at that time, it will block your inventory only.
Once you post that, then again, that block will get released.

u) But even if the block get released, also if that it is in the inventory bucket,
whenever you do picking it will not show it as available stock for you.
 v) There is some error will show.
In that case, what we will do is we will just check whether there is anything pending in the
inventory bucket or not.

w) And we will ask the team to connect with the finance team to clear that immediately so that
then only it will allow for picking and all other internal moments.

5) analyzer posting, it should be like if they are carrying out daily physical inventory, it should be the daily
process.

a) daily the inventory control team should convince the finance team to post it in the difference
[Link].

b) what happens for even if the inventories are getting released for internal moments, we cannot pick
it for outbound delivery and for shipment at all if the material is lying in the inventory bucket.

c) So as soon as you know the material is lying in the inventory bucket, we have to get it cleared with
the team to post it then only it will totally allow you to pick and also the stock will be sync in both
the systems.

d) What happens sometimes if you are not updating the inventory bucket,In ECC side your stock will
not be correct. That may lead to an incorrect creation of availability.

e) Check for the delivery creation, also for output. So it should be in an As and when whenever we
cycle counting means it should be a daily process only difference analyzer daily they have to get it
 updated.

f) whatever you are doing will be only within and stocks only will get [Link] will not get sync
with that.

g) So normally different analyzer as and when we get some differences under the inventory bucket
due to the posting of the document, we have to get it cleared.

h) For example, cycle counting means [Link] used to count the products in a different bins or, you
For different products we used to count.

i) So whenever the bucket inventory bucket is getting a different quantity, we need to immediately get
it cleared with the finance team.

j) so that the stock will get synced in the ECC. For example, you are saying ten quantity stock here,
but when I count only eight quantities there.

k) whenever the bucket inventory bucket is getting a different quantity, we need to immediately get it
cleared with the finance team so that the stock will get synced in the ECC.

l) For example, you are saying ten quantity stock here, but when I count only eight quantities there.
But what ECC will still show ten only. And if I try to create a delivery for ten, it will allow.

m) But it is not the case. Only eight is there.

n) So immediately I want to get the ECC also to sync . so that the availablity check also will run
correctly with the actual physical stocks., it will not create any problems.

o) The cycle [Link] do it daily on a regular basis.? Daily, but not not for the same product every
day, but for one or the other product it will create.

p) You know, daily cycle counting report means normally it should be done based on the indicator
[Link] on the cycle counting indicator.

q) every 30 days - you will set the indicator as A. if you give a it will say what is the last counting
date.

r) If it is, not counted within the last 35 days, then it will create a PI Document for that product.
 s) Now, next day, again, it will check maybe the other product, which was not counted within the last
30 days, which are having indicator, it will try to create PI Document - like one of the other products
Daily.

t) It will get keep on creating. Only those bins will get blocked and within a short period of time, they
will normally do in RF-gun.

u) They will just scan each and every products and just they can confirm it and then they will
close it.

v) So for the recounting, there are two [Link] is like you counted in.

w) But major difference in the stocks and you have counted previously. some doubts on what we
counted. So you want to recount it.

5) Re counting

a) One, automatically you can trigger the recount

b) or manually you can trigger recount

c) manually means in If you click on Recount, what happens? System will immediately change the
status of your original document to the reco- status RECO-unt status .instead of, the counter
status.

d) And it creates a new document which will be linked to that as a succeeding document. A new
document will be created in active status. The current document will move to the recount status.

e) And in the status document flow, you can see that this proceeding, succeeding document is a new
document.

f) In the new document, the proceeding document will show the recount status [Link] will be
linked.

g) And then you can do the recounting of the counting of that new document and then you can go for
posting.
h) This is a manual method of creating a recounting.

i) Automatic method is you can maintain the tolerance for recounting, triggering.
Also the concept is same only.

j) whenever a user is counting based on that user ID, you will have a tolerance limit if it
[Link] are different [Link] there posting tolerance, recounting tolerance

k) It will check the recording tolerance is assigned or [Link] yes, it will see what is the difference in the
REcounting.

l) If it is more than the recounting tolerance, it automatically creates a recording [Link], if

you want, then you have to maintain the recounting tolerance in the system.

6) Create the new physical inventory area - path

7)There are three types of physical inventory area -
a) Cyclic counting
b) periodic counting
c) Continuous

d) we will have a cyclic counting indicator A,B,C and we will maintain product master based on
that system triggers

e) periodic means yearly Once it will trigger .

f) But in continuous physical inventory, there are various methods are there in EWM

g)Document will get created automatically during the first day of the fiscal year.

h) put away physical inventory. - Is it the first put away happening for this year? If yes, then it will
create only storage bin specific [Link] have to count all the stocks in the bin so that the
bin will know marked as counted.

i) So what is the significance?I mean, why only for specific bean or first fiscal year?

j) Because normally yeah, normally what happens in a year? Once in a year they have to complete
the inventory for all the stocks in their warehouse.

k)And they want to for example in one bin you are not doing any movements in that cases it might
not be required.

l) You are going to do put away means you are trying to move some stocks from that bin.
So some movement are happening in that bin. So you may configure it, what happens whenever
you are creatinn put away for one bin a document in initial will get created by that way all the bins
will get counted in that year without you go and create it manually.

j)System will automatically take care of [Link] meet the audit requirements it may be helpful.

k) So whenever in that fiscal year the the bin gets stock, it will be creating a physical entity.

l) You can show that we have counted all the bins where we have the goods [Link] will be
the benefit of that.
m) And our next one is low stock check, low [Link] have two typesYou know, low stock means you
can maintain some threshold value.

n) Like, for example, quantity is ten. Whenever stock is going below ten quantity. I want to create a
physical inventory document for that. So I want to count it.

0) What is the actual stocks, you know, in the bin? So low stock check means here there will be one
field called threshold value.

p) You will have one field called threshold value quantity. You have to maintain [Link] if you see here,
this is low static with fiscal entry.

8) First one, if you maintain the threshold value, whenever the value goes beyond the threshold,
value system will create the physical inventory document.
9 ) Second one is threshold value is a fixed threshold value is zero whenever the value of the No.
Quantity of that particular product, what you're picking is going, zero quantity.
Then system will create a document for that

10) this is basically for an analysis or investigation [Link] whenever the material is going below
some level, they automatically they want the document to be created to do the analysis.

11) So to do you know, why the stock is getting reduced ?

a) whether it is as per the expected

b) or whether some, you know, loss in the materials is happening or not, for that cases, they can go
for this option.

12) In that case, whenever the low stock is getting triggered, system will create a document.

13) another one is posting after [Link] will be automatic posting if you click this posting after
count.
14) The document type will be there for each and every physical document that will show whether
it is a low stock

15) By giving the what type of inventory procedure document he is searching,

he can give in the report input in the monitor like cycle counting means low stock ad-hoc means like as

16) So that document type will differ so he can search by any low stock physical document, no generated
or not by giving the null in the selection screen and date and execute.

17) Then for today's date, is there any low stock document?
Is there they can come, then he can ask them to count it.

18) So document type differentiates whether it is a cycle counting or no periodic ad hoc or no low stock,
the differences will be based on the document type only.

19) And posting change after count is as told automatic posting.

[Link] change after count is as told automatic posting.

But the condition is it should be within the tolerance limit of that posting.

21. No differences are more than the tolerance limit you maintain, then it will not do.
22. If it is between the tolerance limit, then a system for example, sometimes you will count a same
quantity and actual count is same, or sometimes you will count.

23. Tolerance is given up to five different. but you are counted is the difference only one quantity. So
zero differences

24. or one quantity difference which is less than the tolerance. It will automatically post it.
So you no need not to go and explicitly post it . it will automatically get posted.

25 . But if you are not selected this, then you have to do the posting. Even there are zero quantity
difference. Also you have to post manually only.

[Link] quantity.
Display object.

27. These two are whenever the counter is going and counting whether he should have the visibility of the
Book stock or not.

[Link] you click on the quantity, then it will show the quantity.
If you give the object the detail object level like handling unit handling unit under what are the products.

29. if you want to do a complete level, then you can select this checkbox.
a) The different buttons are there to take you to different screen first screen and
the same screen listof it will show.

b) If you click on F3 complete, then it will mark as X.

C) Otherwise, if you go to the product screen, that product button will be there.
If you click, then it will go to the next screen product and you can enter the product quantity,

30. Similarly here, serial number. If it's a serial product, whether you want to display the serial number also
or not, when the user is counting that also you can enter it here.
If you tick this, then serial numbers will be displayed. If you are not take this, then serial number will not be
displayed

[Link] check. Like in the completion check,

we have two methods offline completion check or online.

32. If you set this one, it will become offline.

33. Offline means there is a separate completeness check report. You have to execute that separately.

34. Then only at that time system will check what are the areas the stocks are there for this product in
this activity area and whether counting document is there for all these bins and all area bins are not
and it will check.

35. If yes, then all are counted, then it will mark it as X and one table will be updated as x.

36) If you do not set this indicator completeness check is performed at fiscal inventory when the physical
inventory document is posted online mode.

37) So in online mode, if you give some time, there might be a performance issue because every county
posting, whenever you click on the posting, it will check the whole activity area and stocks and everything
is posted or not.

38) And count posted means what is the latest counting date and all these things it will take and then
update in the table the date completed in which date it got completed.
All these things it will try to update when try to save the posting itself online mode.
38) And within the physical inventory area level, what are the allowed document types you can maintain
here [Link] this is how we will tell about the procedure, whether it's a continuous or cycle counting
or adhoc

39) CC means cycle counting. Ad hoc means not continuous fiscal inventory,Now, suddenly,you want to
count one particular bin, you know, not it's not following a cycle counting.

40) You're not following a periodic suddenly due to some differences or some investigations, you want to
do it, some ad hoc document.

41) But for cycle counting you cannot see bin specific cycle counting should be always product specific.
42)Path for the physical inventory area to activity area

43) specific physical inventory area setting the warehouse, basically here, we will
maintain the, you know, the variance and currency

a) Whenever you create the tolerance limit differences, what is the currency you need to consider for
the differences that you will maintain?

b) This procedure is used for determining for document printing.

If you want to have document printing, you can have a procedure assign that can have a condition type
access sequence based on that, you can assign the printers and all the condition record.
So system will print it in that one.
44) The previous screen you can define number range and you can assign what number range you want
for the document.

45) And here, whether you want tolerance, check should happen totally.
If you want to switch off your tolerance check, you can click on here.

46) completeness for warehouse. This option will tell whether you want to do the completeness check
for a product at each activity area level. Area level or warehouse level.

47) If you click on complete warehouse, it will check for always the whole complete warehouse and mark
it as one one [Link] you define as activity area level for every activity area if separately marke it is
completed.
48) There are different tolerances. One is this tolerance group is for difference analysis.

So when finance team is clicking on the posting in difference analyzer for how much posting this
particularI user tolerance limit they are having, This is for posting.

49) Meaning whenever a person is doing the posting within the EWM PI Documetnt posting there at the
time, what should be the tolerance for that user?

Last one will tell only for recounting automatic recounting to trigger that. What should be the limit?
The tolerance limit. If it crosses that, then it will go.

50) we will have a tolerance group like, this is nothing but high,minddle, low like that.

So here you can have allowed [Link] value and percentage this like no QTY , whether no value
based tolerance, should be there It should be allowed or not.
If you click no tolerance, then it will not consider the value.

51) If you are not tick this no tolerance, then it will check the value and according to that value difference,
it will check whenever it is going below that.

No more than this tolerance value for this group value, then it will try to trigger the,
saying that you are, this is exceeding your tolerance limit like that.

52) So what we will do, this tolerance group should be assigned to the user ID here you will mention the
value and percentage value based check and quantity.

53) You know, this percentage based and this group should be assigned to different users.

54) if some value differences are going more than some amount, then it should go to the plan manager
or someone to approve it

55)supervisors you will give like low level and manager, you know, warehouse manager or no, the plan
managers will get high level like that.

56) So if some value differences are going more than some amount, then it should go to the plan
manager
or someone to approve it. with a valid reasons,, so justifications you have to get this approved.

57)Once we completed these settings in the tolerance , there is one more option Easy Access
58) Tolerance group will be assigning in the recounting and clearing.
Clearing is nothing but posting in the EWM.

59)Here you can enter your username specific to the activity area.
You can mention that posting tolerance group Recounting Tolerance group.

a) This Posting tolerence group will be checked for allowing to post

b) This tolerance group will check for to automatically

trigger a recounting document.

60 ) You can mention a tolerance group for each user

If you are not mentioning activity area, then it will for all the activity areas.
If you mentioned a specific activity only, it's applicable for that activity area.
61) Difference analysis you have here, okay difference analyzer. There will not be any activity area or bin
level [Link]'s a product [Link] it will check overall differences you are posting.

62. This is the tolerance group assignment for the user.

Once this is done, you can go into the physical inventory for creating document.

63. Default button option , and ener the values in adhoc

a) can select some particular product and count it.

b) If you select the blocking indicator, what happens It will block the inventory, otherewise nott
64) Afer setting the default values , select the method of physical inventory

65) Take the particular storage bin

66) Check the status by setting the flag and click the initial state active

67) After setting the status and set the initial status active

68) Freeze book is whenever you create a document, what was the book stock?
So even if you move the stocks after you are doing the counting

69) because sometimes what happens, they will do the counting immediately after the counting, they will
not have time to sit in the system and post.

a) They start the shift work or something so materials can be moved out.

b) Also, sometimes if you are not blocked the inventory. So now what happens during the creation bin
quantity was ten. After counting and before you enter the results, there might be some materials
taken out of the bin.

c) So the quantity, because this the current stock is eight only, but when you enter the counting result
system will check during the creation of document.
 d) What was the stock that it's considered that as a book stock and then only it will calculate the
differences. It will not check the current stock.

e) It will check the stock during the [Link] will be suitable like, as I told, they will do the
counting, but immediately the supervisor will not have time to enter the count results.

f) He will may be doing the break time or sometime after two three hours, but they want to start the
movements now so they can do the movements,

g) for example, when they create the document ten quantity. And they counted also it is ten quantity.

h) But he is not having time to enter the count results. The paper is counted list. According to the
paper is right now they started the movements from the ten quantity.

i) Two quantity is picked now the stock is eight quantity.

j) Now in the break time, the supervisor is going to enter the count results when he entered the count
results as ten system will not say that it is eight , two picked , balance eight

k) system will say at the time of creation it was ten, now it is ten.
Difference is zero. That is called freeze stock.

l) If you're not click the freeze stock, it will see current book stock. whenever I'm entering the count
result. What is the book stock now?

m) That stock only it will show . which 8 stocks currently there , 10 stocks in the creation time,
then two differences it will show.

n) So this normally you will have some time overlap between the counting and entering the counting
results. Then you have to go with the freeze stock.
 o) Click to save and mark the inventory number

70) Once you saved the document was created , we have to process PI Document

71) Check the physical inventory status . So if you see this document is active status.
If it is inactive, you can click on this active [Link] can activate again.

a) If you want to deactivate, you can deactivate everything you can do.

b) And if you want to go count how to select for counting, you can enter the count date.
72) Three handling units thee for the below product, hu displayed on the hierarchy

73) you have one bin under that one HU and under that one product, then two three line items
will be there.

74) First line item will say parent object bin line item his way, for example, this is one
of the example. It does not have the handling

75) Second line item have the handling unit. Under handling unit product details will be there
L - Storage Bin
H - Handling unit
S - Product

76) Click the third sequence , Level 1 , Level 2 - select the level 2 and enter the quantity
77) After entering the quantity , click to save the counted items and check the weather the status of the
Item

78)we can also recount , after checking the total stocks of the bin
79) After the recounting, we will see the subsiding document in the reference field

80)Compare the quantity in the mon and put the recounted quantity in the scwm/pi process . Then click
the post button

81) So here now what happens once the count posted this differences will become updated here.

82) we can see the difference in the scwm/PI_PROCESS

83)And once this difference is updated as a next thing, we will be going to difference analyzer.

84) Basically it will show the document number here.

so stock reference, which document has created the difference and how much quantity is the difference?
85) So sometimes one document can post a minus quantity, then plus quantity.

86) Then finally the sum up of this will come at a header [Link] can post at the item level individually
also or at a header level header.

87)The final cumulative quan in the header level .

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